FxWirePro: USD/CAD capped at 1.3067, recovery unlikely to sustain

USD/CAD opened Noram markets 13056, +58 pips vs the previous close, overnight range 1.2997/3067.

• The pair staged a solid-comeback from lows near 1.29 handle on Monday, but recovery likely capped at 1.3067
   
• Crude prices plunged on Monday following the IEA supply forecasts, weighing heavily on the Canadian dollar, pushing USD/CAD higher
   
• On Tuesday, crude prices recovered some of  the  steep falls, with Brent futures up 1 percent in early European trade to $50.37 per barrel
   
• Short-term recovery attempts are likely to to run out of steam, continued trading below Ichimoku cloud top has weakened the market structure further
   
• USD/CAD is currently trading at 1.3062, with immediate resistance at 1.3067 (Session High Oct 13) and support at 1.2997 (Session Low Oct 13)
   
• Light data day today, US NFIB, weekly Redbook sales due ahead in the U.S. session
   

Resistance Levels:

R1: 1.3067 (Session High Oct 13)

R2: 1.3074 (Daily High Oct 8)

R3: 1.3116 (Tenkan-Sen)

Support Levels:

S1: 1.2997 (Session Low Oct 13)

S2: 1.2901 (Daily Lows Oct 9/12)

S3: 1.2900 (Psychological Level)